RIM SECURITIES LIMITED FINANCIAL SERVICES GUIDE ABN 86 111 273 048 AFS Licence No. 283119 Effective: 22 September 2014
INTRODUCTION This Financial Services Guide ( FSG ) is designed to assist you in deciding whether to use any of the services offered by RIM Securities Limited ( RIM Securities ). It contains information about: the services offered by RIM Securities; how RIM Securities operates; how RIM Securities and related persons are paid; how RIM Securities deals with client s complaints; and any interests, associations or relationships that could influence RIM Securities. It also contains RIM Securities Terms and Conditions and Privacy Policy. If you require additional information or clarification, please do not hesitate to contact us. RIM Securities Limited GPO Box 6 BRISBANE QLD 4001 Telephone: +61 (0) 7 3020 3000 Fax: +61 (0) 7 3020 3070 Email: mail@rimsec.com Visit: www.rimsec.com RIM Securities Ltd ABN 86 111 273 048 AFS Licence No. 283119 Level 1, 41 Edward Street, Brisbane Q 4000 GPO Box 6, Brisbane Q 4001 T: +61 7 3020 3000 F: +61 7 3020 3070 www.rimsec.com mail@rimsec.com
OUR SERVICES Who is RIM Securities? RIM Securities was established in 2004 and is a public unlisted company with a head office located in Brisbane and a client base across Australia. Its activities are regulated by the Australian Securities and Investment Commission ( ASIC ). Services offered by RIM Securities RIM Securities is a licensed dealer in fixed income financial products and specialises solely in fixed income financial products such as government and semi-government bonds, corporate debentures and bonds including hybrids, deposit and payment products, and managed investment products. Under its Australian Financial Services Licence, RIM Securities is licensed by ASIC to provide: dealing and execution services; general financial product advice for fixed income financial products; and online term deposit services. Other Information you may receive As part of RIM Securities services, RIM Securities may also provide you with a Product Disclosure Statement ( PDS ) for product offerings. You may receive a PDS for the product when it is being sold from the issuer of the product or where you are purchasing the product from a person to whom it was issued during the previous 12 months. A PDS will provide general information about the product and the issuer, including: the terms and conditions of the product; the cost of the product; and the risks identified by the issuer associated with acquiring the product. The PDS will assist you in deciding whether the product is suitable for you to purchase. Page 2 of 10
General Financial Product Advice The general financial product advice provided by RIM Securities will be provided in the form of factual information and explanations about product details in respect of fixed income financial products issued by others. It will not include any comparison between similar products, nor will it be based upon your individual financial circumstances, objectives or needs. Specifically, this advice does not constitute financial product advice as defined under Section 766B on the Corporations Act (2001). Please refer to the Disclaimer on this website. You should, before acting upon any this information from RIM Securities, consider whether or not RIM Securities general product advice, and any proposed investments in fixed income product you may decide to acquire through RIM Securities, is appropriate for your individual financial circumstances, objectives or needs. Where applicable, you should obtain and read the PDS for a fixed income product (if any) before deciding whether or not to invest in that product. RIM Securities Business Interests and Associations RIM Securities is an unlisted public company whose shares are majority owned by Trustees Australia Limited ABN 42 010 653 862. It is not owned by, or a division of, any financial institution or product originator, nor does it have any interest, association or relationship with any financial institution or product originator, other than as a broker which could influence RIM Securities. This allows, RIM Securities to source fixed income products from a very broad range of financial institutions, product providers and originators. RIM Securities Insurance requirements RIM Securities has professional indemnity insurance in place that satisfies the requirements of compensation arrangements for financial services provided to a retail client under Section 912B of the Corporations Act 2001. Subject to all statutory limitation periods our insurance arrangements cover the services provided by RIM Securities, its employees and authorised representatives. HOW RIM SECURITIES OPERATES Terms and Conditions RIM Securities operates as a dealer in fixed income financial products. Its role is to assist you in obtaining the best rates of return on fixed income investments. RIM Securities will only deal with you and act upon your instructions on the basis and the terms and conditions set out in this FSG. RIM Securities does not act as the agent of the issuers of fixed income products, or Approved Deposit-Taking Institutions, and is not responsible for any payments to be made by them to you. Page 3 of 10
Providing Instructions When using RIM Securities services, you will be assisted by a representative who has been employed by (or is an Authorised Representative) and acts on behalf of RIM Securities. The representative s name will appear on any contract notes or trade confirmations issued by RIM Securities. You may provide instructions to the representative by telephone, email, facsimile or post using the contact details contained in the introduction to this FSG. RIM Securities will act upon those instructions to purchase rollover or sell fixed income products. RIM Securities will generally act as the counterparty (the seller or buyer of the product) and will also act upon your instructions in relation to making, rolling-over, redeeming or reinvesting term deposit investments. If you fail to provide RIM Securities with written or oral instructions for an existing fixed income, or term deposit investment, then (subject to the policy of the issuer of the fixed income product or the Approved Deposit-Taking Institution) RIM Securities will arrange for your investment to be rolled-over until express instructions are received from you. RIM Securities acts as your agent when doing these things. RIM Securities will maintain a record of your investments as well as any correspondence relating to these investments. These files are all available for your examination if required. Benefits and Commissions RIM Securities does not normally charge its clients a fee or commission for its services, however, the company may do so when appointed by you to act as an adviser. The firm derives its income from the following four sources: Acting as principal When RIM Securities acts as the counterparty (that is, the seller or purchaser) of a fixed income product, RIM Securities will receive a margin on the sale of that product. This may be done by purchasing the product in RIM Securities name at a price and then selling it to you at a slightly higher price, or by purchasing a product from you in RIM Securities name at a price and then selling it at a slightly higher price. The price quoted to you by RIM Securities for a product is net of RIM Securities margin. Depending upon the size and duration of the product, this margin is likely to be less than 0.25% of the yield to maturity. Acting as a broker When RIM Securities acts as a broker of deposit facilities offered by Approved Deposit - Taking Institutions, RIM Securities will receive a commission or margin on the interest rate offered on the deposit. The interest rates quoted to you by RIM Securities on deposits are net of RIM Securities margin. The bank or financial institution providing the deposit facility is responsible for paying RIM Securities the margin, which is likely to be less than 0.15% and depending on volumes may be as low as 0.025% of the yield received on the deposit. Page 4 of 10
Distributing new issues or products When RIM Securities acts as the distributor of new issues and fixed income products originated by third parties, RIM Securities will receive a commission from the originator. In these instances, the commission payable differs with each issue. The level of commission will be disclosed in the PDS for the issue and is likely to be in the range of 0.25% to 1.50% of the amount invested. Acting as an Adviser When RIM Securities is registered as an adviser to administer your account on non-rim Securities product platforms, RIM Securities may charge you a fee for this service. In these instances, you will be invoiced directly by RIM Securities at the end of the calendar month. The fee will be agreed with you and will include several factors including the investment period and is likely to be in the range of 0.05% to 0.15% of the amount invested. Representatives RIM Securities does not remunerate its representatives on individual transactions by RIM Securities clients. Rather, RIM Securities remunerates its representatives by a salary, plus a quarterly bonus of the net revenue generated by that person during that quarter if certain key performance indicators are reached. The remuneration to RIM Securities representatives will be paid from (and therefore be less than) the margins or commission paid to RIM Securities set out above. Benefits for those who refer clients to RIM Securities RIM Securities may pay a commission or other benefit to an external party who referred you to RIM Securities or to someone nominated by the external party, if you enter into a transaction. That commission or other benefit will not be a fixed amount or based upon a set formula but will be paid from (and therefore be less than) the margins or commission paid to RIM Securities set out above and recorded in the contract note or trade confirmation. Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF) RIM Securities has an obligation under the AML/CTF Act to verify your identity before proceeding with any financial services, and therefore will provide you with a list of documentation you will need to provide to enable us to satisfy the customer identification requirements of the AML/CTF Act. Page 5 of 10
Dispute Resolution RIM Securities goal is client satisfaction and has therefore established procedures that aim to deal with and resolve disputes, including membership of an ASIC approved independent dispute resolution centre. If you have a complaint, please take the following steps: Step 1 Step 2 Contact your representative directly and provide him or her with the details of your complaint. If the representative has not satisfactorily resolved your complaint within three days, please send an email to mail@rimsec.com or send a letter addressed to: RIM Securities Customer Resolutions Manager GPO Box 6, BRISBANE QLD 4001 RIM Securities will do everything it can to resolve your complaint as soon as possible. Step 3 RIM Securities welcomes feedback about our product and services, so we can deliver the best product and services to accommodate your needs. If you are not satisfied with the outcome of your complaint after undertaking the RIM Securities steps 1 and 2 above or if your complaint is unable to be resolved the complaint can be referred to the Financial Ombudsman Services (FOS). This is a RIM Securities ASIC approved external dispute resolution service. Financial Ombudsman Service Limited RIM Securities membership No: 12030 Website: www.fos.org.au Address: GPO Box 3, MELBOURNE VIC 3001 Email: info@fos.org.au Tel: 1300 780 808 Fax: +61 (03) 9613 6399 ASIC Free-call: 1300 300 630 Email: infoline@asic.gov.au Page 6 of 10
TERMS AND CONDITIONS In consideration of RIM Securities dealing with you or on your behalf, you are deemed to have acknowledged and agreed to the following terms and conditions: 1. You warrant that you have received and read RIM Securities Financial Services Guide (FSG). 2. You acknowledge and agree that RIM Securities has told you that: a) any advice provided by RIM Securities is general financial advice; b) the advice has been prepared without taking into account your objectives, financial situation or needs; c) before acting on any advice from RIM Securities, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and d) if any advice by RIM Securities relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain a product disclosure statement relating to the product and consider the statement before deciding whether to acquire the product. 3. You authorise RIM Securities to act on your written or oral instructions to purchase, make, rollover, sell, redeem, or reinvest, fixed income product, and term deposit investments. 4. If you fail to provide RIM Securities with written or oral instructions for your existing fixed income, or term deposit, investments, then (subject to the policy of the issuer of the fixed income product or the Approved Deposit-Taking Institution) you authorise RIM Securities to provide the instructions necessary for the fixed income product, or term deposit, investment, to be rolled-over until RIM Securities receives express instructions from you. 5. You acknowledge and agree that RIM Securities does not act as the agent of the issuers of fixed income products, or Approved Deposit-Taking Institutions, and is not responsible for any payments to be made by them to you. 6. You acknowledge and agree that RIM Securities may act as a principal or counterparty in any purchase or sale of fixed income products by you. 7. You must pay for purchases (including taxes, costs, duties, and charges, in respect thereof) and make good delivery in respect of sales, to enable RIM Securities to settle by the due settlement date. If you fail to pay for purchases or make good delivery in respect of sales by the due settlement date, RIM Securities may sell all or part of those purchases and pass onto you all costs incurred by it as a result of your failure to settle. 8. You warrant that at all times during your dealings with RIM Securities you will be in a position to meet all commitments on your part arising out of your dealings with, or business conducted on your behalf by, RIM Securities. Page 7 of 10
Terms and Conditions (continued) 9. If you comprise more than one person you are jointly and severally bound by this agreement. 10. RIM Securities may appropriate credits and all payments received from you or on your behalf to reduce any money owing by you to RIM Securities whether on the Account or any other Account. 11. You acknowledge that RIM Securities may receive fees, commissions, or other benefits or advantages, as a result of you executing a transaction with RIM Securities or a third party. 12. You acknowledge that RIM Securities may pay fees, commissions, or other benefits or advantages, to: a) its representatives as a result of you executing a deal with RIM Securities or a third party; and b) a third party who referred you to RIM Securities or to someone nominated by the third party. 13. RIM Securities may, at any time, reissue a Contract Note or Trade Confirmation in order to correct any errors or omissions. 14. You must notify RIM Securities in writing of any change in your name, address, telephone number or other material circumstances affecting the settlement of transactions. Page 8 of 10
PRIVACY POLICY AND COLLECTION STATEMENT Your privacy is important to us RIM Securities has created this Privacy Policy and Collection Statement ("Privacy Policy") in order to demonstrate RIM Securities firm commitment to your privacy. RIM Securities is bound by the Privacy Act 1998 and the National Privacy Principles ( NPP ) to keep information collected from you confidential, except in certain circumstances, e.g. where the law requires us to disclose information, or when you agree to RIM Securities disclosing information. RIM Securities updates its Privacy Policy from time to time, as required. If updates occur, this will be included in RIM Securities Financial Services Guide, and posted on its website to ensure you aware of the information collected, how it may be used, and under what circumstances it may be disclosed. This Privacy Policy does not apply to the acts or practices of RIM Securities that are directly related to current or former employee records. What sort of information does RIM Securities collect? RIM Securities collects information about you ("Information") in the following ways: 1. RIM Securities collects Information about you when you, or your agent, perform transactions with RIM Securities, or with third parties when RIM Securities is acting in its capacity as a fixed income dealer, and during the course of RIM Securities providing you with its services in its capacity as a licensed dealer in fixed income products. 2. RIM Securities collects Information about you when you send RIM Securities an email, namely, your email address and any other personal information which you disclose in your email. 3. RIM Securities collects Information about you when you register as a client of RIM Securities either by telephone, written communications, and email. What happens if you do not provide the Information? If you do not supply sufficient personal information to RIM Securities, RIM Securities may not be able to carry out your instructions to perform transactions in relation to fixed income products, to ensure that the products and money due to you is able to be transferred, or to provide you with information arising out of your business relationship with RIM Securities. Why does RIM Securities collect the Information and how is your Information used by RIM Securities? RIM Securities collects the information to provide you with RIM Securities services as a licensed dealer in fixed income products. For example, RIM Securities may use the Information to comply with your instructions relating to transactions in fixed income products. Page 9 of 10
RIM Securities also uses the information to send you information (either by email or post) that you request, such as contract notes. If at any time you receive material that you did not request, or which you no longer wish to receive, please inform RIM Securities by correcting and updating your profile as discussed below. Who does RIM Securities disclose personal information to? RIM Securities will not sell, rent, trade or otherwise supply to third parties any personal Information obtained from you unless you consent. RIM Securities will supply third parties (for example financial institutions) personal information obtained from you, in order to carry out transactions in fixed income products which you have instructed us to perform. RIM Securities may produce aggregate (that is, not individual) reports which incorporate some of the Information. The reports are for use by RIM Securities and its business partners, however, these reports do not include any personally identifiable Information. Please note that if at any time RIM Securities is required by law to release information about you or your organisation, RIM Securities must cooperate fully. How will RIM Securities keep your personal Information secure? RIM Securities has security measures in place designed to protect against the loss, misuse or alteration of the Information under its control. These security measures are: 1. Access to the Information by employees of RIM Securities is restricted to those employees who are required to access the Information in order to carry out your instructions in relation to transactions in fixed income products. 2. RIM Securities has clauses in employee contracts requiring confidentiality of RIM Securities clients and their information. 3. The Information is stored on computers in RIM Securities lockable offices. Correcting and updating your profile RIM Securities gives you the following options for accessing and modifying Information previously provided: 1. You may gain access to Information that RIM Securities has collected about you, by writing to: Privacy & Security Management RIM Securities Limited GPO Box 6 BRISBANE QLD 4001 Telephone: (07) 3020 3000 Facsimile: (07) 3020 3070 Email: mail@rimsec.com 2. No charge will be applicable, unless costs are incurred in the provision of information i.e. postage. To update your profile please contact RIM Securities on the above contact details and notify of changes required. Page 10 of 10